CMBS

  • Groundbreaking cannabis CMBS closed

    Market updates and sector developments

    Groundbreaking cannabis CMBS closed
    Pelorus Capital Group has closed PCG 2023-1, the first-ever securitisation backed by cannabis-linked real estate assets. The firm retained a third of the US$70m offering, selling US$45m of bonds, which it says attracted a range of institutional investors and hedge funds that were “drawn to the high yield and growth of the businesses”. The single-tranche CMBS .......

    Market Moves 2 August 2023

  • New tricks

    Banks' backing boosts AI utilisation in ABS

    Artificial Intelligence (AI) is increasingly being embraced by banks seeking to improve workflows and support securitisation processes. But other benefits of the technology are also becoming apparent in the current challenging economic environment.

    “We knew mathematically how an AI model could be used, but now we can actually see the benefit of it,” explains Altin Kadareja, co-founder and .......

    News Analysis 31 July 2023

  • PRA launches SecReg consultation

    Market updates and sector developments

    The UK PRA has launched a public consultation on proposed changes to the retained EU Securitisation Regulation and the accompanying technical standards on risk retention and disclosure. Rather than a complete overhaul, the authority is seeking to introduce targeted adjustments to the existing EU securitisation framework by 2Q24.

    The key changes include a more principles-based approach to due .......

    Market Moves 28 July 2023

  • Job swaps weekly: Angelo Gordon beefs up in structured credit

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Angelo Gordon poach a new head for its commercial real estate debt division from Tilden Park Capital Management, alongside a raft of senior promotions in its structured credit team. Elsewhere, law firm Blank Rome has launched a new Dallas office with two senior hires from Alston & Bird partners, while ARC Ratings has .......

    Market Moves 28 July 2023

  • Litigation looms

    Investor disputes to rise as CMBS valuations decline

    Plummeting commercial real estate valuations in the US may trigger a rise in litigation as investors battle over control rights in CMBS. However, an additional risk is emerging that contracts may not be interpreted as expected.

    “I see a greater willingness to push back, as there is so much more at stake now,” suggests Davis+Gilbert partner Joseph Cioffi. .......

    News Analysis 27 July 2023

  • 'Transformational' merger agreed

    Market updates and sector developments

    Rithm Capital is set to acquire Sculptor Capital Management in a transaction valued at approximately US$639m, which includes US$11.15 per Class A share of Sculptor. This transaction will leverage Sculptor’s US$34bn of AUM with Rithm’s US$7bn of permanent equity capital and US$30bn-plus balance sheet to create what the firm describes as a “world-class” asset management business.

    Sculptor’s investment .......

    Market Moves 26 July 2023

  • Less punitive

    Halving of p-factor sparks SRT optimism

    The European Council’s finalisation of the Basel 3 reforms last month has sparked renewed optimism across the European capital relief trades market, with news of an agreement to halve the punitive p-factor (SCI 28 June). The impending need to address the adverse effects of the output floor had been at the core of the regulatory debate for synthetic .......

    News 25 July 2023

  • CMBS opportunities

    Despite sector malaise pockets of gold are to be found

    US commercial real estate fundamentals give rise to concern about CMBS returns, but there are areas of the market which are offering opportunities not seen for a decade or more, says Sanmore ceo Boris Sanchez.

    Sanmore is a Houston, Texas-based commercial real estate lender, broker and investor.

    While the CMBS market as a whole has suffered depressed values for the last couple of .......

    News Analysis 21 July 2023

  • Obra adds CLO issuance capabilities

    Market updates and sector developments

    Obra Capital has acquired the assets of asset management and investment research firm KDP and its affiliated companies. The transaction supports Obra’s expansion of its existing liquid markets capabilities in structured credit into the fundamental credit space. By combining KDP’s established research with Obra’s diversified asset management capabilities, the firm expects to augment its product suite to include the .......

    Market Moves 21 July 2023

  • Job swaps weekly: Oppenheimer's blockbuster appointment

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Oppenheimer & Co appoint a new head for its Latin America investment banking group. Elsewhere, Angel Oak Companies has poached a new chief legal officer from Reverence Capital Partners, while Fitch has a new head of structured finance product strategy in New York. 

    Oppenheimer & Co has stepped up its .......

    Market Moves 21 July 2023

  • Consumer goals

    EIF, historic champion of SMEs, embraces consumer ABS

    Three recent transactions by the European Investment Fund (EIF) reveal a subtle but potentially impactful change in approach to the institution’s securitisation investment strategy. The fund is displaying an increasing willingness to invest in consumer ABS transactions, with green transition and gender diversity goals at the top of the agenda.

    In early July, the EIF took a stake .......

    News Analysis 19 July 2023

  • Regulatory push

    Retention RTS, draft SI move forward

    The last week has ushered in a couple of regulatory updates in the European securitisation market. The European Commission adopted the regulatory technical standards (RTS) on risk retention under the EU Securitisation Regulation on 7 July, while the UK Treasury on 11 July published a draft of the statutory instrument (SI) that is set to replace the EU Securitisation .......

    News 13 July 2023

  • SRT boom

    IACPM data shows record year for synthetic securitisations

    The global volume of synthetic securitisation issuance reached its highest ever level in 2022, with both the number of trades and notional pool size far outstripping pre-pandemic levels, according to the latest IACPM survey. The results suggest that 90 significant risk transfer trades were executed last year with an aggregate underlying pool size at inception of €199bn, surpassing previous .......

    News 11 July 2023

  • Embracing 'enablement'

    Begum Gursoy, global technical head, debt capital markets an...

    Q: Sustainalytics supports investors develop and implement responsible investment strategies, including by providing second-party opinions (SPOs) on whether a green, social or sustainability bond framework is aligned to market expectations. Could you outline the steps involved in assigning an SPO to an ESG securitisation?
    A: The overarching function of an SPO provider is to have a holistic view of the .......

    Provider Profile 10 July 2023

  • Generali inks Conning acquisition

    Market updates and sector developments

    Generali Investment Holdings (GIH) is set to acquire Conning and its affiliates, with the aim of enhancing the long-term growth plans of both companies. Conning will continue to execute its growth strategies with support from the company’s current owner, Cathay Life Insurance Co, and Generali.

    Conning and its affiliates will continue to operate independently under their current management .......

    Market Moves 10 July 2023

  • Job swaps weekly: Succession at Oaktree

    People moves and key promotions in securitisation

    This week’s securitisation job swaps have seen Oaktree Capital Management announce the retirement of ceo Jay Wintrob and a succession plan that sees three senior executives stepping onto its executive committee. Elsewhere, Deutsche Bank has appointed a new CLO implementation head, while Moody’s welcomes back a structured finance professional after a two-and-a-half-year stint with BFF Banking. 

    Oaktree ceo Wintrob will retire in .......

    Market Moves 7 July 2023

  • Out of office

    European, US CMBS headwinds diverging?

    The office CMBS market is grappling with headwinds brought about by declining occupancy rates and rising costs of borrowing. However, as this Premium Content article finds, the European CRE market may not be as badly affected as its US counterpart.

    Rising delinquency rates and falling office occupancies are a cause for concern among CMBS market participants. However, there ......

    News Analysis 6 July 2023

  • Job swaps weekly: US Modular Capital lures Transwestern veteran

    People moves and key promotions in securitisation

    Job swaps weekly: US Modular Capital lures Transwestern veteran

    This week’s securitisation job swaps have seen an industry veteran leave her role as head of structured finance at Transwestern to take up a new C-suite position at US Modular Capital. Elsewhere, US Bank has named a successor to Stephen Philipson as head of commercial products, while Barclays, Winston & Strawn and .......

    Market Moves 30 June 2023

  • Seventh heaven

    Market updates and sector developments

    Seventh heaven

    Fannie Mae has executed its sixth and seventh reinsurance deals of the year, designated CIRT 2023-6 and CIRT 2023-7, for a total of US$786bn of mortgage risk. Both trades were brokered by Aon, and the risk was shared by 21 insurance and reinsurance companies.

    The two loan pools referenced through this brace of .......

    Market Moves 26 June 2023

  • BNY turns to AccessFintech for digital innovation

    Market updates and sector developments

    BNY turns to AccessFintech for digital innovation

    BNY Mellon has become the first trustee to join the data management platform, AccessFintech, as it continues in its commitments to improving loan data management, operations, and digitisation across the financial universe.

    The collaboration intends to significantly improve BNY Mellon’s loan data management capabilities by addressing historical issues, .......

    Market Moves 22 June 2023

  • UBP launches new fixed income fund

    Sector developments and company hires

    Union Bancaire Privée (UBP), the Geneva-headquartered private bank, has launched a new fixed-income strategy spanning high-yield bonds, subordinated debt and securitised credit. The fund, named UBAM Strategic Income, will seek a double-B rating risk profile and target an average return of 7% per annum across its lifespan.

    UBAM Strategic Income, which will invest in CLOs in addition to .......

    Market Moves 20 June 2023
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